DIMAF faces funding hiccups

industries.
CABS managing director Mr Kevin Terry yesterday told the Parliamentary Portfolio Committee on Industry and Commerce that without Government’s contribution there was effectively no fund to talk about.
“In a strict legal sense there is no DIMAF fund yet. CABS have Old Mutual’s deposit but it does not have Government’s funds nor a guarantee so effectively there is still no DIMAF,” he said.
“We are using Old Mutual’s funds to get this thing going at our own risk. I am stuck between a rock and a hard place because if we lose this money I will have a lot of explaining to do,” he added.
Mr Terry said the full agreement and a Government guarantee to operationalise the fund was also yet to be signed. He added that at present only a Memorandum of Understanding was in place.
He said to date only US$800 000 had been disbursed to six successful applicants while 31 firms were still having their applications vetted.
Mr Terry dismissed the notion that the fund was only meant for Bulawayo industries saying according to the MoU that the partners signed, firms from the whole country could benefit.
He, however, admitted that it would be difficult for the companies that access the money to repay the loans since they were struggling.
Mr Terry denied reports that conditions imposed by CABS for accessing the loans were too stringent and made it difficult for firms to access the fund.
Firms can access loans of up to US$1 million for a period of two years at 10 percent per annum, he said.
“All the terms were spelt out in the MoU. CABS has not imposed any new terms and conditions,” said Mr Terry.
The Government has implemented various measures to revive the fortunes of ailing industries in the country including setting up other credit lines like ZETREF.
It has also crafted policies which include the Industrial Development Policy and the National Trade Policy which will be launched this week to stimulate recovery of industry and commerce. — New Ziana.